Moody's Downgrades Spanish Retailer DIA's Bond Ratings
Ratings agency Moody's has announced that it has downgraded the senior unsecured long-term rating of Spanish grocer Distribuidora Internacional de Alimentacion (DIA) to Caa2 from Caa1.
The decision was based on DIA's recent refinancing, which the agency believes has lowered the recovery prospects of bondholders.
"Although the new credit facilities have improved short-term liquidity, the success of the company's capital increase will be key to stabilise its liquidity profile and credit quality at sustainable levels," explained Vincent Gusdorf, a Moody's vice-president, senior analyst and lead analyst for DIA.
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